Bank of America analyst Allen Lutz has increased the price target for Cencora (COR) from $270 to $285, maintaining a Neutral rating on the stock. This adjustment reflects the potential impact of recent trade measures and regulatory changes that could affect the pharmaceutical industry.
Lutz noted that the new tariffs imposed on China and India, coupled with modifications in FDA policies by the current administration, may lead to an increase in generic drug prices. This situation could benefit several companies, with Cencora (COR) being highlighted alongside Cardinal Health (CAH, Financial) and McKesson (MCK) as positioned to gain from the anticipated rise in generic drug inflation.
Overall, these developments suggest a possibly advantageous landscape for key players in the generics market, as companies navigate the evolving economic and regulatory environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Cardinal Health Inc (CAH, Financial) is $143.72 with a high estimate of $161.00 and a low estimate of $119.12. The average target implies an upside of 11.52% from the current price of $128.88. More detailed estimate data can be found on the Cardinal Health Inc (CAH) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Cardinal Health Inc's (CAH, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cardinal Health Inc (CAH, Financial) in one year is $114.16, suggesting a downside of 11.42% from the current price of $128.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cardinal Health Inc (CAH) Summary page.
